Van Wagenen manages the portfolios of high-net-worth clients. He completes an individualized IPS for

each client when opening their account. He then develops a personal asset allocation formula based

on each client’s risk tolerance, financial goals, and so forth. Over the past two days, the domestic

and global equity securities markets fell more than 6%. Fearing a continued drop in the markets, Van

Wagenen liquidates his personal investments and moves to cash until the financial markets stabilize.

But he keeps his clients’ portfolios fully invested pursuant to the directives in their IPS. Van Wagenen’s

actions are